Power Finance Corporation Ltd (PFC), a state-run Non-Banking Financial Corporation (NBFC), has filed a complaint with the Economic Offences Wing (EoW) of the Delhi police against Gensol Engineering Ltd over alleged filing of falsified documents, the company said on April 22.
“PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents. PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations,” the power sector-focused NBFC said in a statement issued on April 22 evening.
The public sector undertaking (PSU) said it is also examining the matter internally under its “anti-fraud policy”, while clarifying that it did not issue any letters to credit rating agencies CARE and ICRA.
Gensol, of which the ride-hailing all-electric vehicle (EV) app BluSmart was a part, allegedly forged letters from its two lenders - PFC and Indian Renewable Energy Development Agency Ltd (IREDA) - to show that it was regular in debt servicing. However, the issue came to light when the credit rating agencies began verifying the letters with the lenders.
PFC’s complaint with the EoW will be the fourth simultaneous investigation against Gensol, BluSmart. The company is also being investigated separately by SEBI and the Ministry of Corporate Affairs. Besides, the Enforcement Directorate (ED) is also likely to probe the company for alleged money laundering.
PFC said it sanctioned Rs 633 crore to Gensol Engineering Ltd in January 2023 as part of the government's push for electric vehicle (EV) adoption through schemes like FAME and PM E-bus Seva. “This funding was earmarked for the procurement of 6,000 EVs— Rs 587 crore for the procurement of 5,000 electric four-wheelers for lease to BluSmart Mobility’s ride-hailing service, and Rs 46 crore for the procurement of 1,000 electric three-wheelers for cargo operations. However, the three-wheeler loan was not availed,” read PFC’s statement.
It said out of the Rs 587 crore loan sanctioned towards electric four-wheeler vehicles, PFC had disbursed Rs 352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility. “Till date, 2,741 vehicles have been delivered and hypothecated to PFC as confirmed by third-party agencies appointed by PFC,” said the lender.
PFC further said it is actively exploring all possible options to recover the outstanding principal amount of Rs 307 crore from Gensol Engineering Ltd.
“Gensol had been servicing its dues regularly until January 31, 2025. However, in the fourth quarter of FY25, PFC invoked the Debt Service Reserve Account (DSRA) to clear dues for February and March 2025,” it said.
“Additionally, PFC has also pledged off Gensol's equity shares and Non-Convertible Debentures (NCDs), a Corporate Guarantee from Gensol Ventures Private Limited, and Personal Guarantees from promoters. Liquid assets in the form of TRA balances, DRA balances, and Fixed Deposit by BluSmart with a lien marked to PFC are also in place,” the lender said.
Market regulator Sebi had recently passed an interim order against Gensol Engineering and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi over alleged fund diversion.
Shares of Gensol Engineering were down 5 percent on April 22, and lower by 86 percent so far in 2025.
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